RE: Fine piece of work Mr Hemingway27 Aug 2020 20:51
News is certainly over due now, and I've been wondering which direction it might come from first. One direction is licencing.
Here are all the paragraphs in the annual report which mention licensing:
"Annual Financial Report and Notice of AGM" (23rd Dec 2019)
https://www.lse.co.uk/rns/INSP/annual-financial-report-and-notice-of-agm-xh5s2ao0vj7ndlh.html
===[
Inspirit intends to explore opportunities to license out the underlying technology and the Directors believe that, in some instances, the patents owned by Inspirit may be also used in the development of products other than a mCHP appliance. A prototype of the appliance has been independently tested and shown to be capable of simultaneous generation of up to 15kW thermal and up to 3kW electrical output. Once development of the appliance has been completed and commercialised, the Directors expect that the appliance will initially be marketed in the UK and Europe and eventually worldwide. Additional revenue streams may be possible through product licensing, sales of warranties and further development of the product.
...
The Group is also embarked upon multiple applications for the Stirling technology and developed schematics for several sterling engine applications including: Inspirit Marine, Inspirit Solar, Inspirit Cooler and Inspirit Motor/ Generator. The Group are looking at licensing the Stirling technology for these various applications.
...
In addition to the above strategy, the Company has also been working on the application of the Stirling engine technology in difference sectors and these sectors including solar, renewable and refrigeration and licensing this technology accordingly.
...
Following other sources of products interest during the year, management have focussed the value-in-use calculations on licensing sales rather than product sales. This has been done as management consider that the revenues are more near term in nature and note that it uses the same core developed technology. Given the product's nature, the core estimates have remained broadly consistent with an increase in gross margin given the shift in focus to licensing which is consider will provide a higher margin than product sales.
]===
The last paragraph is of particular interest! No, not the spelling and grammar, but the suggestion that revenues from licensing is nearer term than that from product sales, and of higher margin to boot.
It's disappointing that the BoD have yet to respond to CH's letter, but hardly out of character! One glimmer of hope for silence is that we are within spitting distances to signing a licensing deal with the large Swedish car/marine engine manufacturer, upon which if we don't see a multi-bagging from this share price I'll eat my calculator! ;-)
If JG pulls that off, everyone is happy, assuming CH has bought his average down considerably in recent times, and appears willing to add below 0.07p, but not above, from what I can see.
Ob.
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